Market Conditions - July 10, 2006 by Carla L. Davis
Tampa Bay, Florida, has seen a shift in the market over the last 6 months. While last July saw record numbers of sales and rises in appreciation rates, this July has become a strong buyers market. Fewer homes are selling -- causing a dramatic increase in inventory. The oversupply is caused partly by the number of new homes that were built in anticipation of the boom continuing. But buyers are being much more cautious, some even deciding not to enter the market at this time until things are more "certain." Can the real estate market can ever be certain? One expert reports to Realty Times that the market is expected to pick back up come the end of the year. This prediction follows the suite of other pundits, such as NAR and the Federal Reserve, though all involved are moving cautiously, as inflation risks increase housing risks. But Floridians are optimistic. A recent survey conducted by the Attorneys' Title Insurance Fund's Consumer Education Campaign, found that 60 percent of Florida "homeowners believe that the value of their homes will increase in the next 12 months." "As the Florida real estate market continues to soften it is reassuring to see Florida homeowners generally optimistic about the next 12 months," said Charles J. Kovaleski, president and CEO of Attorneys' Title Insurance Fund. The survey also found that 71 percent feel that affordability is the "biggest obstacle to homeownership in the state." This is an 18 percent increase since 2005. Perhaps this is why 78 percent of those surveyed are not planning on purchasing a home or condo over the course of the next two years. | 
